The growing sustainability challenge facing local governments

According to the Australian Local Government CEO Index 2024, nearly two-thirds (65%) of councils have reported direct impacts from natural disasters over the past two years. Only 9% say they have avoided natural disasters, and less than half say they are very prepared (10%) or prepared (30%) to meet future ESG obligations.

The House of Representatives Standing Committee on Regional Development, Infrastructure and Transport, meanwhile, released an interim report in February 2025 that found there was a general agreement across most LGAs that mitigating the effects of climate-related disasters was both essential and significantly expensive.

That report found the average annual cost of natural disasters is expected to increase to as much as $300 million by 2050. But that’s just an average: the 2022 flood events in NSW, for example, caused over $5.1 billion in insured damages.

Floods, bushfires, and extreme weather events continue to significantly strain council resources, creating major financial burdens and complicating the delivery of essential services.

Simultaneously, councils face rising community expectations. Residents now expect proactive environmental management, climate resilience, and greener urban spaces. Yet, many local governments struggle to fund even basic maintenance, let alone ambitious sustainability projects, due to outdated funding models and constrained budgets.

This funding shortfall severely restricts councils' ability to invest in sustainable infrastructure or modernise operations, ultimately threatening community well-being and future prosperity.

Smarter asset management: a key pathway to sustainability

Technology is playing an increasingly vital role in helping councils manage their environmental responsibilities effectively, and asset management in particular sits at the heart of councils' sustainability efforts.

Infrastructure such as roads, buildings, and public facilities represents significant financial investments and has substantial environmental footprints. However, traditional asset management often involves reactive maintenance strategies, which can be costly and environmentally unsustainable.

Modern asset management software helps councils shift towards proactive, predictive maintenance, significantly improving sustainability outcomes. These systems provide comprehensive visibility into the condition, performance, and lifecycle of assets, enabling councils to forecast maintenance needs, optimise resource allocation, and reduce environmental impacts.

By proactively managing their infrastructure, councils can reduce waste, lower emissions, and ensure assets remain sustainable and functional over the long term.

Choose the right technology partner for sustainable growth

Partnering with the right technology provider is crucial for councils to realise their full sustainability potential. Councils should seek partners who understand their specific operational and regulatory environment, offer scalable solutions, and can seamlessly integrate with existing systems.

An ideal technology partner should offer:

• Proven industry expertise in local government operations
• Solutions that seamlessly integrate with existing infrastructure
• Scalable platforms to meet evolving council needs
• Compliance with rigorous data security and environmental standards

Software as a Service (SaaS) Enterprise Resource Planning (ERP) is particularly beneficial in this context. SaaS ERP solutions deliver continuous updates, scalability, and enhanced security, enabling councils to adapt quickly to changing sustainability regulations and community expectations without the significant upfront costs or complexity associated with traditional IT deployments.